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In the Monetary Policy Committee meeting on Friday, Governor Shaktikanta Das projected India’s GDP growth at 6.5% for the fiscal year 2023-24, highlighting the country’s economic resilience amidst global challenges. The repo rate remains steady at 6.50%, with a shift from an accommodative stance, while the Consumer Price Index (CPI) inflation forecast for the fiscal year 2024 was adjusted upwards.
Governor Das emphasized India’s significant contribution to global growth and its successful inflation control, signifying its economic stability. He underscored the strength of the Indian economy and its unique ability to leverage its ongoing transformative shift, even as the global economy grapples with daunting challenges.
The festival season is predicted to stimulate private consumption and investment, providing a further boost to the economy. This comes as part of India’s broader economic landscape that has demonstrated strong global standing and resilience in the face of adversity.
In his address, Governor Das also shed light on various sectors of the Indian economy. Despite a global economic slowdown and geopolitical tensions leading to a contraction of merchandise exports and imports since February 2023, India’s services sector Gross Value Added (GVA) witnessed robust growth in Q1 of 2023-24.
However, he noted a decline in India’s services exports from April to August 2023, despite growth in software, business, and travel services. This trend aligns with global patterns where the Purchasing Managers’ Index (PMI) for manufacturing has been contracting, while the services PMI is moderating.
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